19 Cash and cash equivalents

2010
£m 		2009
£m
Cash and bank balances 943 965
Cash equivalents 1,386 1,196
2,329 2,161

Cash equivalents mainly comprise short-term deposits and investments in money market funds with an original maturity of three months or less. The carrying value of cash and cash equivalents approximates their fair value.

Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:

2010
£m 		2009
£m
Functional currency 2,131 1,687
US dollar 102 128
UK sterling 10 6
Euro 14 262
Other currencies 72 78
2,329 2,161

The currency in which cash and cash equivalents are held, together with the effective interest rates applicable to cash and cash equivalents are as follows:

Values Rates
2010
£m 		2009
£m 		2010
%		 2009
%
US dollar 305 221 0.8 0.9
UK sterling 652 437 0.5 0.4
Euro 95 340 0.4 0.4
Canadian dollar 3 43 1.0 0.4
Australian dollar 86 53 4.5 3.3
Other currencies 1,188 1,067 5.3 5.3
2,329 2,161

In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest, as follows:

2010
£m 		2009
£m
Cash and cash equivalents as above 2,329 2,161
Less
– accrued interest (1) (1)
– overdrafts (145) (181)
Net cash and cash equivalents 2,183 1,979

Cash and cash equivalents include restricted amounts of £82 million (2009: £80 million), principally due to exchange control regulations in certain countries.